(1) below performance requirements – no increase;

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(2) meets performance requirements – two percent increase;

(3) exceeds performance requirements – three percent increase;

(4) substantially exceeds performance requirements – four percent increase.

The dollar amount of each performance increase must be added to the employee’s base pay until the pay level of the employee has reached the maximum of his grade or executive compensation level. After the employee has reached maximum pay in his grade or executive compensation level, he may continue to receive performance pay but it must not be added to the base pay.

(B) The estimated cost of these performance increases, based upon predetermined norms, is two and one-half percent of the payroll of each agency. If the General Assembly provides more or less than two and one-half percent for performance increases, the percentage of increase of each category of performance must be adjusted accordingly.